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Former Member

A/C entries, Expenses and Accruals during sample sales invoicing

Dear Experts,

I was aware about the theoretical concept of accrual functionality in SD condition type where system posts entries to FI without debiting customer account. Day has come to implement the same practically where earlier discussions in scn by friends have not helped enough as there is no clear end of any post related to this.

Back ground of scenario;

I have configured Free of charge sample sales to deliver and then billing. Billing required because of business needs below entries;

Quality Expenses G/L: 7100012 Cr 124

Sales Basic Price: 100 Dr

Custom Duty: 10 Dr

CVD: 13.2 Dr

Cess: 0.46 Dr

HECess: 0.23 Dr

All of my condition types are accruals. System doesn't debit customer account as well as expected. However, entries are coming like below;

I have tried with all combinations in pricing procedure with account keys/accrual keys and G/Ls in VKOA but not yielding expected results.

Please suggest your expert comments.

Thanks.

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2 Answers

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    Former Member
    Nov 04, 2015 at 03:56 PM

    Dear JP,

    While putting across question to forum I had by mistakenly showed expected accounting entries wrongly (i.e showed Dr instead Cr entry). Indicating below the correct entries expected by business;

    Quality Expenses G/L: 7100012 Dr 124

    Sales Basic Price: 100 Cr

    Custom Duty: 10 Cr

    CVD: 13.2 Cr

    Cess: 0.46 Cr

    HECess: 0.23 Cr

    Simply putting, System should bring Quality Expenses G/L: 7100012 instead of debiting customer A/C.

    Also, so far status remains same, although I tried with multiple changes and thoughts.

    Please suggest/help. System is debiting customer even with R100 100% discounted.

    Thanks.

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    • Former Member Former Member

      Dear JP,

      Still not been able to get through and awaiting feedback.

      Few points for understanding and clarifications; I have gone trough the threads you shared but I wasn't either able to understand or correlate the scenario with mine and I would need more time for this as I have very little understanding of solution to complexities involved with. In my case (SEZ company) no excise or CIN involved.

      Please correct if I am wrong in below;

      1. I believe I should have ZSMP and ZPR1 both in pricing procedure. (So in sales order??)

      2. I would need account determination for ZPR1 some how (as basic price will be for this c.type)

      3. ZSMP (made accrual with accrual key) is finally I need only for Dr entry after billing (instead of customer) as explained below and earlier as well.

      (ZSMP) Quality Expenses G/L: 7100012 Dr 125.42

      (ZPR1) Sales Basic Price: 100 Cr

      (JBCD) Custom Duty: 10 Cr

      (JCVD) CVD: 13.2 Cr

      (JCSS) Cess: 0.46 Cr

      (JHEC) HECess: 0.23 Cr

      (JSAD) SAD: 1.53 Cr

      4. K007 100% discount happening in sales order but still at the end its debiting customer instead of debiting ZSMP (quality expenses)

      5. Please let me know what changes make ZSMP to come in place of customer account debit

      6. Item category kept is relevant for Billing Relevance (A). And Pricing left blank.

      7. What specific should be a combination of account key and accrual key in pricing procedure against ZSMP and ZPR1 and VKOA?

      Your expert suggestions would help me resolve this urgent business need.

      Thank you.

  • Oct 30, 2015 at 10:18 AM

    Hi VRK,

    FYI, you can't have accrual entry for duties and tax. Ideally for your requirement you should have condition type for 100% discount. Where you need to place this discount for Price + Duty. And only quality expenses will have accrual entry. So, in that case, your account entry will be:

    Quality Expenses G/L: 7100012 Cr 124

    Quality Expenses G/L: 7100012 Cr - 124

    Sample Sales Adjustment A/c(100% Discount) Cr 124

    Sales Basic Price: 100 Dr

    Custom Duty: 10 Dr

    CVD: 13.2 Dr

    Cess: 0.46 Dr

    HECess: 0.23 Dr

    Thanks, JP

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    • Former Member Jyoti Prakash

      Dear JP,

      Thanks for the feedback. Still results remain unchanged. Notifying you of my changes below along with results for your review sir. I have assigned ERU as ERL has already been assigned to base price.

      Look forward to your suggestions in this regard please.

      Thanks.

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